Shocking 19% yield! What is the true nature of the “investment in a shabby house” that a “billionaire” with assets of 1.5 billion yen has arrived at?

A house that is worthless is a treasure trove…

Ragged homes” is a method of buying detached houses at the lowest possible price, preferably for free, then renovating them and renting them out.

Mr. Masanori Nagae, a successful tax accountant and certified public accountant who has also suffered many hardships as an investor, has amassed assets in excess of 1.5 billion yen.

He has repeatedly succeeded and failed in various investments while achieving results in his main business. We asked Mr. Nagae what kind of investments he recommends now, and this is his answer.

Target abandoned and unoccupied houses.

Recently, vacant houses have become a social problem throughout Japan, and I would target such abandoned and neglected houses,” he said.

In fact, Mr. Nagae has already purchased a number of detached houses that are about 40 years old. In fact, Nagae has already purchased a number of 40-year-old detached houses, including one in Shizuoka Prefecture for 980,000 yen, one in Saitama Prefecture for 3.3 million yen, and one in Kyoto for 2.5 million yen.

The property in Saitama Prefecture is a 44-year-old detached house in Satte City, about a 12-minute walk from Satte Station, and was purchased for 3.3 million yen.

I plan to rent it out for 60,000 yen per month. If the rent is as expected, the annual rent will be 720,000 yen, so the yield will be about 19%. Even taking into account property taxes and other expenses, a yield of about 15% can be expected.

Outstanding stability as a side business

Is there anyone who would pay rent for such an old property?

We get asked that a lot (laughs). (Laughs.) It is important to determine the location, but in a normal urban area, you can find tenants, and as I mentioned earlier, I have a number of properties that are already rented out.

Once a house has a tenant, they tend to live in it for a long time, and it is very stable as a side business. With this amount of investment, many people would not have to take out bank loans. Without borrowing, there is no interest burden.”

Of course, even though this is a rags-to-riches investment, it is risky for amateurs without knowledge or experience to get into it out of the blue. They should start by gathering information from books, social networking sites, and YouTube videos. In addition, information on very inexpensive detached houses can be found on general real estate websites, but recently, specialized websites have also appeared, such as “Minna no Zero Yen Property” and others. Those who are interested should check them out.

However, “Ragged Houses” is only the beginning. What is the “next asset to explode” that Mr. Nagae has been secretly stockpiling? In addition to Japanese real estate, he is now investing in “stocks in emerging countries” and “certain financial instruments” from a long-term perspective. And modern alchemy with AI as his partner. …… In the paid version [FRIDAY Subscription], the core of his portfolio to protect and increase his 1.5 billion yen assets and specific stocks of interest will be fully disclosed.

Masanori Nagae is a certified public accountant, tax accountant, and investor. After graduating from university, he passed the CPA exam and joined a major auditing firm. He was in charge of auditing listed companies and supporting IPOs. After changing jobs at Toyota Motor Corporation, he became independent in 2012. In about 3 years, he expanded his tax accountant office to 5 branches nationwide. As an investor, he started investing in stocks in his 20s and real estate in his 30s, experiencing numerous failures. His accumulated losses amounted to approximately 50 million yen. When his investment income exceeded 10 million yen per year, he sold his tax accountant’s office and became a full-time investor. He currently manages over 1.5 billion yen in total assets. His latest book, “The Strongest Investment and Tax Saving: How to Increase Money by a Two-Fisted Tax Accountant,” is now on sale.

Click here to purchase Nagae’s recent book, “Strongest Investment and Tax Saving: How to Increase Money by a Two-Fisted Tax Accountant” (One Publishing).